Global beef prices are surging, with the expectation that this will soon be felt in Ireland.

Demand from China for meat imports is having a significant effect on countries that are involved in the Chinese and US trade.

New Zealand has diverted 56,725t of its beef exports from the US to China to get a better price. It looks likely to fill less than half of its EU sheep meat quota this year as it sends sheepmeat to China instead.

There is also concern in the US about the availability of lean manufacturing beef. US prices are the equivalent of €6/kg, almost €2/kg more than this time last year.

Farmers in all of the world’s main beef exporting countries are now getting higher cattle prices.

Among the top six beef exporting countries in the world, only Brazil and Argentina have lower prices than Ireland.

The US leads the way, at the equivalent of €3.99/kg for choice steers, followed by Uruguay on €3.86/kg and New Zealand on €3.59/kg.

Australia ties with the EU average of €3.56/kg, while Ireland is currently bottom of this group on €3.44/kg.

The other major exporters of beef, Brazil and Argentina are still returning farm-gate prices below €2.50/kg.

Bord Bia signed a deal to promote Irish beef with online retailer JD.com, China’s second largest online platform with over 320m annual customers.

Bord Bia CEO Tara McCarthy forecast that China will become a major destination for Irish beef, generating potential volumes of 25,000t to 30,000t, worth €120m.

McCarthy said: “The cooperation with JD.com represents the beginning of a new and exciting phase in our trading relationship with China, as we see Irish beef placed front and centre with the Chinese consumer.”